The CPA credential is still seen as a foundation  of the profession, but new data highlight its prominence is on a downward trajectory.

The average percentage of staff with CPA licenses between 2020 and 2024 throughout all firms dipped to 48.4 percent from 56 percent. This drop happened throughout all firm sizes, which indicates a systemic change in both hiring practices and credentialing trends, according to Inside Public Accounting Data Dive. 

Bigger firms that tend to provide a wider range of advisory and consulting services report even lower CPA ratios, with only 41.5 percent of staff holding licenses last year.

Many factors seem to be contributing to this trend. Firms are getting into non-traditional service areas that usually demand different skill sets. The cost and time needed to be a CPA might be pushing some professionals to alternative credentials. There are less accounting graduates who are trying to attain the CPA designation, which creates a talent pipeline concern going forward.

States including Georgia and Minnesota have already introduced alternative licensure pathways, indicating that the traditional 150-hour model might not meet the needs of a changing workforce.

According to Inside Public Accounting, the shift has significant implications for firms as they revaluate how they create teams, provide value and support licensure in a profession that is becoming more and more diverse.